“Listerine did not make mouthwash, as much as it made halitosis.” –James Twitchell
I’m currently reading Freakonomics a very good, random book. “A Rougue Economist Explores the Hidden Side of Everything.” (If that’s any indication of just how random.) One discussion in the book is on mouthwash.
Jambo can learn a lot from Listerine - the first mouthwash. Listerine was invented in the 19th century as a powerful surgical antiseptic. It was later sold, in distilled form, as a floor cleaner and a cure for gonorrhea. But it wasn’t until the 1920’s, when it was pitched as a solution for “chronic halitosis” - a then extremely obscure medical term for bad breath, that it achieved blowout success. Ads showed women and men, eager for marriage, but turned off by their mate’s rotten breath. “Can I be happy with him in spite of that?” the ad showed. Listerine had created a need.
The market for mouthwash exploded in just seven years, rising from $115,000 to over $8 million before 1930. This growth, in a market that did not even exist prior to the Listerine campaign. Something to think about when introducing a brand new product.
May 7th, 2005 at 3:01 pm
Great book. My take-away about Listerine and its import for Jambo, or really for anyone building or investing in businesses, is this:
Here we are 80+ years later and folks are STILL buying Listerine. In droves I’m sure. Not just mouthwash per se, but LISTERINE.
Why? Well, it isn’t the technology! I assure you in an afternoon we could figure out how to mix a batch of potion that would have the exact same effect on halitosis as Listerine does.
And NO ONE would put it in their mouths.
The brand was built over time, is trusted for quality and efficacy, and is a durable competitive advantage that can scarcely be undermined except by gross negligence.
The good news for Jambo is that, like bad breath, making new friends is a timeless problem. So there is a potential to build a durable business here too.
-Ben